News

USDINR Weekly Outlook: November 26 - 30

Release Time:2018-11-26 03:51

Market Commentary

Rupee gained on selling by foreign banks and exporters tracking a sharp fall in greenback amid easing crude oil prices. Also, remittance relation overseas inflows ahead of a long weekend weighed on the spot pair further. While, the Reserve Bank of India is capping the fall in the spot pair, but the amount of intervention is small. The Reserve Bank of India said it has decided to set up an expert panel to examine the economic capital framework of the central bank, in a move that could prompt a rethink of what constitutes adequate capital reserves for the central bank. For weeks, government officials have been pressuring the RBI to accede to a range of demands, from easing lending curbs to handing over surplus reserves to the government. The government and the central bank will jointly decide on the members of the panel and the scope of the panel, the RBI said in a statement. In addition, the RBI said its financial supervision board will examine the issue around easing of the prompt corrective action plan for some banks - another key of contention between the government and the central bank. Technically now USDINR is getting support at 70.58 and below same could see a test of 70.35 level, And resistance is now likely to be seen at 71.13, a move above could see prices testing 71.45.

Technical Outlook

USDINR is expected to trade with negative bias with selling recommended at Higher levels @ 70.70(141.24) SL 70.85 TGT 70.56-70.44(141.52).. It has resistance at 71.45(139.76) while support is at 70.35 (142.24)